New Zimbabwe Regulation: All Foreigners To Be Reduced To Minority Shareholders | Africa/International

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New Zimbabwe Regulation: All Foreigners To Be Reduced To Minority Shareholders

Date: 07-Nov-2009

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A possible company ownership structure in Zimbabwe has shaken the business community in the country. Under the new regulations, all foreigners are to be reduced to minority shareholders, with Zimbabweans assuming a 51% stake.
This, as the country battles to lure foreign investors to resuscitate its ailing economy.

It started with the land reform programme a decade ago, and now Zimbabwe's economic empowerment thrust has moved up a gear and the business sector is the latest target.

Reports say foreign-owned companies will have to comply 60 days after the gazetting of the new regulation and local entrepreneurs are waiting in the wings.
"We need to make sure that there is order elsewhere in terms of other economic sectors to ensure that what we saw happening in the land reform is not seen happening in the mining sector, in the tourism sector or elsewhere," says Affirmative Action Group President Supa Mandiwanzira.

Critics of the so called 'indigenisation policy' say it will scare off investors by taking away ownership value. And not even the checks and balances of a multiparty government can guarantee orderly implementation.
"I don't believe that the MDC or anybody else can bring suitable conduct into an act that claims the right to tell people 'we have authorised ourselves to demand half of your assets.' Such regulations will tell every potential investor that this is not the place to put your investment capital," says Economist John Robertson.

The development comes amidst jitters over the investment climate in Zimbabwe.

Source: SABC News

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